Key Points
- ResMed CEO Michael Farrell sold 4,991 shares on July 7 for about $1.09 million at an average price of $218.55. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and his remaining stake was still valued at roughly $101.9 million.
- ResMed’s shares were up 1.4% in the session, while the stock opened at $208.64 and has traded between a 52-week low of $180.26 and high of $293.81. The company’s current valuation metrics include a market cap of about $30.27 billion and a P/E ratio of 20.12.
- The company recently posted better-than-expected earnings, with quarterly EPS of $2.86 versus analyst estimates of $2.79 and revenue of $1.43 billion, up 10.8% year over year. ResMed also paid a quarterly dividend of $0.60 per share, equivalent to a 1.2% yield.
ResMed Inc. (NYSE:RMD - Get Free Report) CEO Michael Farrell sold 4,991 shares of ResMed stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the sale, the chief executive officer owned 466,223 shares of the company's stock, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
ResMed Stock Up 1.4%
RMD stock opened at $208.64 on Friday. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06. The company's 50 day moving average is $200.62 and its 200 day moving average is $228.44. The stock has a market cap of $30.27 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 1.21 and a beta of 0.78. ResMed Inc. has a 1-year low of $180.26 and a 1-year high of $293.81.
ResMed (NYSE:RMD - Get Free Report) last announced its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same period last year, the firm posted $2.37 earnings per share. ResMed's quarterly revenue was up 10.8% on a year-over-year basis. Sell-side analysts predict that ResMed Inc. will post 11.13 EPS for the current fiscal year.
ResMed Dividend Announcement
The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th were given a dividend of $0.60 per share. The ex-dividend date was Thursday, May 14th. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. ResMed's dividend payout ratio (DPR) is 23.14%.
Analyst Ratings Changes
Several brokerages recently issued reports on RMD. Morgan Stanley reiterated an "equal weight" rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. KeyCorp dropped their price target on ResMed from $290.00 to $266.00 and set an "overweight" rating for the company in a research note on Monday, June 22nd. Weiss Ratings cut ResMed from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 22nd. Citigroup reduced their price objective on ResMed from $340.00 to $270.00 and set a "buy" rating on the stock in a research report on Monday, June 15th. Finally, JPMorgan Chase & Co. initiated coverage on ResMed in a report on Wednesday, April 15th. They set an "overweight" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $266.55.
Get Our Latest Analysis on RMD
More ResMed News
Here are the key news stories impacting ResMed this week:
- Positive Sentiment: ResMed agreed to sell its MatrixCare business to Frazier Healthcare Partners for $490 million, a move that should sharpen the company’s focus on its core sleep and respiratory care franchises and could improve capital allocation. ResMed Analyst Backs Portfolio Reset
- Positive Sentiment: Analysts and market commentary highlighted the MatrixCare sale as a “portfolio reset,” which may be viewed as a strategic step toward higher-quality, more focused growth. ResMed sharpens core focus with US$490 million MatrixCare sale
- Positive Sentiment: Recent coverage also called ResMed a top momentum stock for the long term, reinforcing the view that investors still see durable trend strength in the name. Why ResMed (RMD) is a Top Momentum Stock for the Long-Term
- Neutral Sentiment: CEO Michael J. Farrell sold 4,991 shares under a pre-arranged 10b5-1 trading plan and also exercised options; because it was planned and routine, it is not necessarily a bearish signal, though insider selling can still draw attention. ResMed CEO Farrell Exercises Options and Trims Stake Under 10b5-1 Plan
- Neutral Sentiment: Wells Fargo slightly lowered its price target to $225 from $227 while keeping an equal-weight rating, suggesting a more cautious near-term view but not a major change in sentiment. Wells Fargo rating and target update
Institutional Inflows and Outflows
Several large investors have recently modified their holdings of the stock. International Assets Investment Management LLC bought a new position in shares of ResMed during the fourth quarter valued at about $25,000. ORG Partners LLC boosted its holdings in shares of ResMed by 181.6% during the fourth quarter. ORG Partners LLC now owns 107 shares of the medical equipment provider's stock worth $26,000 after purchasing an additional 69 shares during the period. Imprint Wealth LLC bought a new stake in shares of ResMed in the third quarter worth about $26,000. WFA of San Diego LLC purchased a new position in ResMed during the 2nd quarter valued at about $26,000. Finally, Sunbelt Securities Inc. purchased a new position in ResMed during the 3rd quarter valued at about $31,000. Hedge funds and other institutional investors own 54.98% of the company's stock.
About ResMed
(
Get Free Report)
ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.
ResMed's product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.
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